Can I Get a Tax Credit for My New Furnace?

For many households, there typically seems to be a large list of home improvement tasks that they need to get done or new ideas they’d like to attempt. While several may not be necessary, furnace replacement is one task that may be vital to keeping your home comfortable through the colder months in Alice.

Buying a new furnace is a large investment. You’ll absolutely see the return-on-investment on your indoor comfort along with your energy costs, but it may be a tad daunting at first. The good news is that when you select a new energy-efficient furnace, you may be approved for a federal tax credit.

According to ENERGY STAR®, the Non-Business Energy Property Tax Credits were prolonged through December 31, 2020. In order to receive the tax credit, you are required to select a furnace that has earned the ENERGY STAR label. It cannot be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When shopping for furnace replacements, watch for solutions with the ENERGY STAR rating so you can be sure you’re picking a high-efficiency furnace.

At Rescue Heating & Air, the experts will help you identify a product that meets your needs and helps you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you’ll need to check the furnace you choose has an Annual Fuel Utilization Efficiency (AFUE) greater than 95, in order to qualify for the tax credit. AFUE means the percent of heat produced for every dollar of fuel consumed.

Qualifying for the tax credit won’t be the only savings you’ll find when you get a new high-efficiency furnace. Some of the most efficient furnaces can save you hundreds of dollars on your energy bills throughout the year. And you’ll also have more confidence in your HVAC system to help your home stay at just the right temperature.

If you think of questions about your eligibility for a tax credit, or if there are additional local savings you could be eligible for by buying a new high-efficiency furnace, give our professionals at Rescue Heating & Air a call at 361-265-4371. You may also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.